How to add Office 365 AD\Users as a part of Azure Directory

n today’s post I will demonstrate how Office 365 global admins can add Office 365 AD\Users as a part of Azure Directory. To be clear – This procedure will allow Azure users to Manage the directory for the Office 365 subscription from within Azure Management Portal.

Now what is the purpose of doing this? – Bringing in all the Office 365 subscription users can be good for many reasons. One of them that I have worked on was to give Office 365 users access to Azure RemoteApps so users can use Apps in Azure Development VMs. A perfect example is when you want to use Office Apps in SharePoint 2016 Azure VM with Azure RemoteApp.

Before we begin, lets understand the user structure that we had for Office 365 and Azure (you probably have a different structure).

1. We logged into Azure with a Microsoft account associated with our Azure Subscription.
2. We are logged into Office 365 subscription using our Work or Home Office 365 account (work or school account).

The two accounts above are different – One is the Microsoft account that is a global admin for Azure Subscription and other is a separate Microsoft account who is a Office 365 global admin.

Now let’s look at how we can bring in all the users from Office 365 subscription into the Azure as a separate directory. By the end of this post, the entire Office 365 directory should be imported into your Azure account and admins can manage both the directories in the Azure Management Portal.

Steps :

1. Login to your Azure Portal and then select New > App services > Active Directory > Directory > Custom Create.

2. Next, Select “Use Office 365 Existing Directory” and check the box for “I am ready to be signed out now”.

3. The above will take you to the screen where you can now login with your #2 account i.e. Office 365 subscription global admin account.

4. Once this done, you will be presented with the popup which basically says that – the Azure global admin will be added as a global admin in Office 365 subscription, to complete this procedure.

5. And that’s it. Continue and let it do its job.

Once completed, the Office 365 AD will be listed under directories in Azure portal.

6. Next, If you want to set this new Active Directory as a default for your Azure Subscription, see the Steps under “Use these steps to change the Active Directory association with your subscription:” in our blog post here

Reference : https://azure.microsoft.com/en-us/documentation/articles/active-directory-how-subscriptions-associated-directory/